Adani Power on Thursday announced that the long stop date under the memorandum of understanding to acquire DB Power Limited has expired, through an exchange filing. The agreement to acquire the company was announced in August 2022 in order to expand its offerings and operations in the thermal power sector in the state of Chhattisgarh.
The company did not provide any other information about the extension of dates or whether the agreement will be renegotiated.
Plan to acquire DB Power extended four times
Adani Power had extended the date for completion of the process four times after the companies signed the deal last year. The acquisition cost was estimated at Rs 7,017 crore.
Adani vs Hindernburg Research
This move comes at a time when the company is going through a cycle of ups and downs after the release of a report by US-based short seller Hindenburg Research that accused the Adani Group of stock manipulation and improper use of offshore tax havens. The company has since the beginning denied the allegations and stated that this move by the short seller has other motives of making profit.
Adani Group, due to this report, has lost close to $120 billion in market value.
Adani Power share
The shares of Adani Power on Thursday at 10:34 am were at Rs 147.80, up by 4.97 per cent.
DB Power
DB Power owns a 2x600 MW power plant in Chattisgarh with a turnover of Rs 3,488 crore for the financial year 2021–22. DM Power is engaged in the business of establishing, operating, and maintaining thermal power generation stations.
